Through Rob van den Heuvel, CEO of Sendcloud
If 2020 has taught us anything, it’s the art of adaptability. As we knock on the door of 2021, the next phase of transition is upon us.
Entrepreneurs and managers need to keep up to date with the latest e-commerce trends for the year ahead to ensure competitiveness as the e-commerce market continues to grow.
The impact of the global pandemic on the retail industry has been huge as many brick-and-mortar stores have had to close their doors. There was hope for survival in those retail businesses that have a strong e-commerce presence and have a reliable platform that allows them to keep selling online.
The question now is how to stay competitive while perfecting an ecommerce strategy for 2021 – our top five tips cover the latest trends for the year ahead, from sales to shipping.
1. Multi-carriers and flexible shipping have become the new normal
Multiple shipping options are a surefire way to attract new customers and keep your existing customers in 2021. Meet and exceed your customers’ expectations by giving them freedom of choice.
While delivery costs are still the deciding factor for consumers, consumers want to be able to choose where, when and how they receive a parcel, with 76% of Brits saying flexibility in delivery options is important to them. Online retailers and freight forwarders have to reckon with this.
Consumers not only want to choose which day a package will be delivered, but also when, where and how it will be delivered. Ecommerce research even shows that customers also prefer companies that give them the option to use their preferred carrier.
Due to the need for flexibility, same-day and next-day shipping is becoming increasingly popular, and even eco-friendly delivery is on the rise. While same-day shipping is already a popular shopping option, it’s poised to become the new normal in 2021. Amazon’s Prime Air is at the forefront of the trend as the retailer continues to promote 30-minute delivery using drone technology.
The only way to offer this level of flexibility is to invest in a multi-carrier strategy. Following in the footsteps of companies like Zalando, implementing a multi-carrier strategy provides an ideal solution to ensure smooth shipping for many forward-thinking e-commerce businesses.
By working with multiple carriers, you can offer consumers more choices in terms of speed and delivery location, but also sustainability, for example. In addition, a multi-carrier strategy also offers great advantages from a retailer’s point of view. You can spread volumes across multiple carriers, making it easier to deal with disruptions and delays.
2. Carrier apps are on the rise
Consumer expectations for delivery service of online orders are getting higher and higher. Consumers tend to keep track of their orders and therefore demand instant access to tracking updates. Good tracking information via email or SMS is the norm these days.
However, it doesn’t stop there. More and more consumers are turning to carrier apps to track their orders. The British are leaders in this area: no fewer than 35% of consumers want to receive delivery updates via the carrier’s tracking app, compared to a European average of 24%.
Apps historically provide a far better user experience than desktop sites accessed through a mobile phone. Progressive Web Apps (PWA) are here to recapture the intuitive and seamless shopping experience typical of shopping apps—only in a web browser. They work in the same way as a mobile app, with the appropriate speed and streamlined user experience.
Royal Mail launched its first tracking app back in 2018. The app not only offers the possibility to track a package, but also to receive push notifications, change delivery options or simply return a package. However, the possibilities of apps are endless.
With the Dutch carrier PostNL, for example, it is even possible to see which packages are on the way using a verified home address, without the need for a tracking number. The ease that apps can offer goes well with the demand for more flexibility, and there’s a good chance apps will play an important role in the years to come.
3. The Rise of ReCommerce
Returns are a problem for most retailers. Not only because they need a refund, but also because returns are very time consuming. Most retailers are not very keen on shipping rejected goods, partly because of the logistics costs.
ReCommerce (reverse commerce) offers a great solution. It is the process of renting, reselling or saving used clothing through online or offline stores.
The lockdown has increased consumer interest in sustainable consumption habits. From clothing to refurbished tech goods, consumers are turning to second-hand shopping to ease the financial burden of the pandemic and adjust to the greener outlook fueled by the disruption to normal consumption.
ReCommerce is seeing renewed interest in 2020 and holds great potential for merchants to reduce the cost of returns by making returns profitable again.
4. Green delivery is a big deal
Along with a renewed interest in second-hand shopping, consumers are also aware of the impact of broader retail practices on the planet. 4 in 10 UK consumers fear the rise in online shopping, particularly following the COVID-19 outbreak, is a concern for the environment.
But despite consumer concerns about the impact of the e-commerce environment, the latest e-commerce statistics show that only 13% are willing to pay for it. People want eco-friendly shipping, but they also feel the financial responsibility lies with retailers.
As an ecommerce brand, this means you need to weigh the cost of green shipping against the competitive advantage it gives you in the eyes of your customers.
Zalando leads the way as the company continues to deliver on its commitment to a net-zero carbon footprint across all deliveries and returns. As an e-commerce merchant, you can opt for green shipping for just pennies with the platform.
As more brands may be reluctant to take on the additional cost of green shipping, stand out as a brand committed to green ideals by including green shipping in your shipping option range.
5. The digitization of stationary shops has accelerated
With COVID-19, e-commerce sales have exploded this year, but brick-and-mortar stores still take precedence over e-commerce when it comes to sales. However, due to COVID-19, Britons ordered an average of 2.9 more products online. Another 38% plan to shop more online after the pandemic ends. As a result, the digitization of brick-and-mortar stores has developed rapidly.
In 2021, retailers will continue to close the gap and capitalize on sales by investing equally in offline retail and e-commerce. In 2020, we’ve already seen offline and online stores come together in the form of interactive e-commerce kiosks and pop-up stores.
DTC brands have long been ahead of the curve in terms of unlocking the ideal customer experience and will continue to drive omni-channel retail in 2021, both offline and online.
Many successful DTC brands, like Casper and Rent the Runway, will continue to leverage the wealth of data they have about customer preferences to create a personalized shopping experience, such as habits or providing the ability to order online and in-store to pick up.
So, if you want to step up your game and build an engaging customer strategy in 2021, you should consider how to enable your customers to move seamlessly between offline and online channels.
Despite tremendous advances in recent years, bridging the gap between these two channels is still a challenge. Those retailers who can show how they can collaborate offline and online to expand and improve the customer experience will strengthen their brand and the shopping experience.
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